Chipmaker Marvell Technologies ( MRVL ) late Thursday moved above Wall Street’s targets for the first fiscal quarter and with its outlook. But shares of MRVL rose in extended trading after the company cited artificial intelligence as a major growth driver.
X
The Santa Clara, Calif.-based company earned an adjusted 31 cents a share on sales of $1.32 billion for the period ended April 29. Analysts polled by FactSet had expected earnings of 29 cents a share on sales of $1.3 billion. On a year-over-year basis, Marvel’s earnings fell 40%, while sales fell 9%.
For the current quarter, Marvell forecast adjusted earnings of 32 cents per share on sales of $1.33 billion. It is based on the middle of his appearance. Wall Street was looking for earnings of 30 cents a share on sales of $1.31 billion in the fiscal second quarter.
“We expect revenue growth to accelerate in the second half of this fiscal year, accompanied by an increase in gross and operating margins,” CEO Matt Murphy said in a news release.
MRVL Stock Jumps on AI Outlook
Also, Marvell expects to profit from growing investments in artificial intelligence, Murphy said.
“AI has emerged as a key growth driver for Marvell, enabled by our leading networking products and emerging cloud-optimized silicon platform,” he said.
Murphy added, “While we are still in the early stages of our AI ramp, we anticipate that our AI revenues will at least double in fiscal 2024 year-over-year and continue to grow rapidly in the coming years.”
In after-hours trading today, MRVL shares jumped 14.1% to 56.43. During Thursday’s regular session, MRVL shares rose 7.6% to close at 49.47.
Shares of MRVL are approaching a 49.58 buy point against a buy basis, according to IBD MarketSmith charts.
Marvell makes networking and storage chips used in cloud computing, automotive, communications and other applications.
Marvell’s stock is ranked No. 10 out of 37 stocks in IBD’s semiconductor industry group, according to IBD Stock Checkup. MRVL stock has an IBD Composite Score of 83 out of 99.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Nvidia Stock Rockets 25% Higher on Bullish AI-Based Forecast
Netflix stock rises as video streamer steps up crackdown on freeloaders
Chipmaker Analog Devices beats targets but warns of slowing sales
View leaderboard stocks near the buy point
Find winning stocks with MarketSmith pattern recognition and custom screens